It looks like we’re going to be graced by a “joint response” to the financial crisis by the G7 leaders.

Paul Tustain says it was government action — slashing interest rates — that caused the crisis. Now they tell us slashing rates further and nationalizing banks is the way to ‘fix’ the economy.

This ‘fix’ will and lead to a protracted period of underperforming stocks and bonds… and create the perfect conditions for a bull market in gold.

Any celebrations over this government bailout (if it gets passed) will be short lived, says Russell McDougal at Investor’s Daily Edge. The $700 billion plan will merely reinforce the fraudulent status quo in US money markets. And that means it will merely postpone the inevitable day of reckoning. Russell says this is a “disastrous long-term strategy” that will eventually wipe out the US dollar and Treasury bonds.

Fast-food chain McDonald’s (NYSE:MCD) is more credit worthy than the US government, according to Finnish newspaper Helsingin Sanomat. We’re not surprised one little bit. After almost eight years of the “CEO president” George Bush in the White House this is where we’re at. The market now sees a fast-food chain’s corporate loan to be a safer investment than the bonds of the world’s most powerful country.

Since whispers of a Lehman Bros collapse started to circulate almost two weeks ago the US dollar index has slumped 4.8%. And the $700 billion Paulson bailout plan has done little to shore up dollar strength.

There are “fears that the package may cost too much, drive up inflation, swell the already bloated U.S. deficit and hurt the ailing economy,” reports AP.

Eric Fry says his investment strategy is based on a simple formula: “Sell the dollar, sell the dollar and sell the dollar.” And as the buck gets whacked, so will American stocks and bonds. On the other hand, foreign assets and commodities should soar…

Despite the chaos on Wall Street, the Fed yesterday left its benchmark interest rate on hold at 2%.

Martin Hutchinson says the Fed has finally starting doing its job: putting price stability over Wall Street’s demands. Real interest rates are negative. This is feeding inflation. It also means Treasury bond yields - also currently below the rate of inflation - are too low and should begin to rise again.

Martin says investors can profit from this situation with the Rydex Juno Inverse Government Long Bond Strategy (MUTF:RYJUX).